Four in 10 families plan to go out more this summer due to the Government’s Great British Summer Savings scheme, according to research from RSM UK’s Consumer Outlook.
The move seems to have encouraged all families, with 44% of households with an income between £20,000 and £40,000 planning on more family days out and nearly a third (29%) with an income between £40,000 and £80,000.
Moe than half (52%) of families with a household income of more than £80,000 intend to go out more.
“With many households continuing to watch their spending, a VAT cut on family days out could provide a timely boost to hospitality businesses this summer by making leisure activities more affordable,” says Saxon Moseley, head of leisure and hospitality at RSM UK.
However, the success of the policy will depend on how much of the saving can realistically be passed on to consumers. RSM says that restaurants face an ‘uphill task’ to update systems and re-print menus within a tight timeframe and given it only covers the summer period, some may feel the administrative burden outweighs the benefits.
It says that leisure operators such as theme parks and cinemas are better placed to update ticket pricing at short notice.
“Our data indicates that for businesses that embrace the changes they could reap the benefits with families looking for value this summer,” adds Moseley.
“In addition, with the industry calling for the government to go further and permanently cut VAT on hospitality, the temporary measure this summer could be a good trial to demonstrate the wider impact reforms could have.”